5 Hated Earnings Stocks Poised to Pop

These heavily shorted stocks could get squeezed much higher if they report positive earnings this week.

I would avoid FRED or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below both its 200-day at $13.65 and its 50-day at $13.38 a share with high volume. If we get that move, then FRED will set up to re-test or possibly take out its next major support levels at $12.80 to $12.25 a share.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.